US sanctions individuals, entities over alleged efforts to supply Iran with air defense systems

Also slaps sanctions on Indian, Turkish firms and people for aiding Iran

The US on Wednesday sanctioned two individuals and one entity accused of helping Iran obtain man-portable air-defence systems (MANPADS).

The State Department said the designations “close off more of the channels Tehran uses to try to rebuild its arsenal and raise the risk for third-country brokers and suppliers.”

The department identified the targets as Mohammed Ali Tolibov, the CEO of Belarus-based Armoury Alliance; Nigeria-based Vanguard Tactical Supply Limited; and Russia-based Alisher Domullodzhanov.

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The department alleged that the network sought to facilitate the procurement of Chinese-origin MANPADS for Iran, including through the use of false end-users.

“The United States will keep exposing the networks that arm Iran’s military and the Islamic Revolutionary Guard Corps and will keep denying the regime the resources that sustain its destabilising activities,” it said.

The US Treasury also issued fresh sanctions against ​companies and individuals based in India and Turkey for their support of Iran, warning that it would continue to go after anyone ‌who supported the Iranian government.

The sanctions are part of the Trump administration's "Operation Economic Outcast," which aims to cut off Iran's ability to sell oil to fund the war with the US and Israel.

Treasury unveiled the new sanctions a day after Democrats made huge gains in midterm elections, winning control of both houses of Congress as voters expressed anger about the Iran war and its ​impact on fueling US inflation.

Treasury last week said its actions were decimating Iran's economy, driving the rial currency to new lows and sending domestic ​inflation rates to levels around 90 per cent.

Treasury said on Wednesday's action targeted what it called "the vast criminal network" run by India-based Suniel Kumar ⁠Sharma, his wife Jaspreet Preeti Shahid, and two other Indian citizens who head two of the couple's businesses, as well as nine separate entities connected to ​Sharma.

"Their schemes have provided false flags and certifications to sanctioned vessels involved in transporting Iranian petroleum, including vessels operating on behalf of the Iranian military and its proxies," ​the department said in a statement.

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False flags and fake maritime certifications allow vessels engaging in illicit activity to evade international safety and environmental regulations, carrying no indemnity insurance. That means such vessels could potentially cause billions of dollars in damages to the economies of the countries in whose territorial waters they operate.

The department also sanctioned Turkey-based Fugo Ground Services Inc for its ​ongoing support of Iran's heavily sanctioned aviation sector.

Treasury Secretary Scott Bessent said the US government would continue to go after anyone who supported Tehran. “We know where you ​are, and we will sanction those who continue supporting the Iranian regime, whether by land, sea, or air,” he said in a statement.

Brett Erickson, managing principal of Obsidian Risk Advisors, ‌said on Wednesday that the sanctions sent a powerful message that the Trump administration was escalating its economic warfare against Iran, despite the bruising election results.

"Even after a brutal electoral defeat, Washington appears unwilling to take even the smallest step toward de-escalation," he said.

US President Donald Trump on Wednesday acknowledged the role the Iran war and the resulting spike in gasoline prices had played in the election losses, but said the military conflict was worth it. Oil prices fell sharply in volatile trading as investors weighed a possible end ​to the war in Iran.

Treasury's ​Office of Foreign Assets Control also ⁠issued a new alert to industry, warning of the sanctions risk of dealing with potentially false-flagged vessels.

Fake certifications

It said Sharma and Shahid, based in Chandigarh, India, had fraudulently claimed to represent countries like Guyana, Eswatini and Laos in issuing flags ​and certifications, allowing vessels operating on behalf of the Iranian military and its proxies to evade international restrictions and keep ​operating.

Sharma's network bought web ⁠domains, creating websites that claimed to offer services on behalf of these countries and others, including flagging, seafarer training and certification, and vessel classification.

The couple also managed a network of India-based entities that were used to establish fraudulent flagging registries, and those firms were also designated for sanctions.

Fugo Ground Services, the Turkish company designated by OFAC, provided ⁠ground handling and ​other services to several US-sanctioned Iranian airlines that continued to fly to Turkey, including Iran Air ​Tour, Saha Airlines, Taban Airlines and Ata Airlines, Treasury said.

The move tightens the squeeze on Iranian oil sales after the US reimposed its blockade of Iranian ports on July 14 following the breakdown ​of a memorandum of understanding between Tehran and Washington to end the war.